What Is FICO Score?
A 300-850 credit score from Fair Isaac that lenders use to gauge default risk.
Definition
FICO Score is the most widely used credit score in the US, calculated from data in your credit reports. Range is 300-850; higher is better. The score weighs payment history (35%), amounts owed (30%), credit age (15%), credit mix (10%), and new credit (10%). Lenders use FICO to decide approvals and price your interest rate. A score of 760+ qualifies for the best rates; 620 is the typical conventional mortgage minimum; below 580 limits options to FHA or subprime.
Example
Going from a 680 to 760 FICO can shave 0.5-1% off a 30-year mortgage rate, saving $50,000+ over the loan.
Use It
Try the Loan CalculatorRelated Terms
Credit UtilizationThe percentage of your available revolving credit you are currently using. Below 30% is healthy.Interest RateThe percentage a lender charges to borrow money, or that a bank pays on a deposit, per year.DTI (Debt-to-Income Ratio)Your total monthly debt payments divided by gross monthly income, used by lenders to qualify you.